Although performance on the Scholastic Aptitude Test (SAT) and the American College Test Program (ACT) indicates that Wisconsin's students are superior to those of other states, a more thorough assessment reveals that the state does not compare well with its neighbors either on the general level of academic preparedness or in efforts to develop the abilities of outstanding students. A study of performance on, and use of, national standardized tests indicates that the state is threatened by an internal "brain drain" that restricts the educational opportunities of Wisconsin students and encourages the most academically talented to leave the state. The following findings are discussed: (1) since relatively few Wisconsin students take the ACT and SAT, it is misleading to compare Wisconsin's seemingly high ranking with states having much broader participation; (2) the testing environment in Wisconsin differs from that of other states because ACT and SAT results are not required for admission to the University of Wisconsin; (3) high school juniors in most other states outperform those from Wisconsin on the Preliminary Scholastic Aptitude Test (PSAT), which is administered under more uniform and comparable conditions and is taken by a high percentage of college-bound juniors; (4) strikingly few Wisconsin high school students take part in the nationally recognized College Board Advanced Placement Program; (5) Wisconsin compares unfavorably with neighboring states in efforts to identify students with exceptional potential and accelerate their coursework, such as the Talent Search program; and (6) significant numbers of the most able Wisconsin students leave the state for higher education elsewhere. Statistical data are included on six graphs. A list of 36 references is appended. (FMW)